Can anyone help with my unusual tax situation?

JDowd

How's things?

Just student who started off a new summer job last week. Received the weeks payslip today, and I have a massive problem. I've been taxed 95% by Revenue.

They have taxed me at a PAYE rate of 92% and PRSI at 3%.

I contacted my employer who told me that I've been placed on a "cumulative tax status", which makes no sense as I'm only 17 years old and paid adequate tax in every previous payslip.

I just sent Revenue an enquiry through 'MyEnquiries' but after looking through their twitter the wait time on a reply doesn't look good.

I'm dependent on this payslip, so I'd be very grateful for any advice/guidance whatsoever.

Appreciate it.

howardmarks

JDowd wrote: »

How's things?

Just student who started off a new summer job last week. Received the weeks payslip today, and I have a massive problem. I've been taxed 95% by Revenue.

They have taxed me at a PAYE rate of 92% and PRSI at 3%.

I contacted my employer who told me that I've been placed on a "cumulative tax status", which makes no sense as I'm only 17 years old and paid adequate tax in every previous payslip.

I just sent Revenue an enquiry through 'MyEnquiries' but after looking through their twitter the wait time on a reply doesn't look good.

I'm dependent on this payslip, so I'd be very grateful for any advice/guidance whatsoever.

Appreciate it.

92% is not a rate of tax for anyone. When was your last job?
Cumulative means they are including all income from January 1st till now which is normal and only gives a problem if your last job made an incorrect calculation.

Mrs OBumble

Just to be sure, are you saying that you earned say €300 but only received €15 from this?

If so, then your employer is massively ripping you off and up to no good. Or is an absolute eejit with no clue how to run a business: at tis time of year, cumulative basis means you should have paix almost no tax. Look for another job immediately.


But if you received 95% of what you earned (eg 285 out of 300), then that sounds about right.

JDowd

Mrs OBumble wrote: »

Just to be sure, are you saying that you earned say €300 but only received €15 from this?

If so, then your employer is massively ripping you off and up to no good. Or is an absolute eejit with no clue how to run a business: at tis time of year, cumulative basis means you should have paix almost no tax. Look for another job immediately.


But if you received 95% of what you earned (eg 285 out of 300), then that sounds about right.

Basically...


GROSS PAY - 525.16e
TOTAL DEDS - 495.27e ( 474.26e - PAYE ,, 21.01 - PRSI )

NETT PAY - 29.89e

It's a trusted production and the lad I'm working with who's also 17 received his Payslip in FULL today along with the rest of the crew. I've another few weeks of work too, but need to get this sorted ASAP.

Like I said I'm only 17 and completely on my own on this one. It'd melt your head....

Appreciate your feedback, any other ideas?

JDowd

howardmarks wrote: »

92% is not a rate of tax for anyone. When was your last job?
Cumulative means they are including all income from January 1st till now which is normal and only gives a problem if your last job made an incorrect calculation.

My last job was with the exact same company back in Feb for the exact same work. I had sorted my credits by then and was paid in full + the emergency taxed I was owed.

The tax details are listed above.

Appreciate the feedback, any other ideas? Thanks.

gordongekko

JDowd wrote: »

My last job was with the exact same company back in Feb for the exact same work. I had sorted my credits by then and was paid in full + the emergency taxed I was owed.

The tax details are listed above.

Appreciate the feedback, any other ideas? Thanks.

Log onto ROS and go into the self service tabs. You can add you employment details there and apply your tax credits to that employment.

Lokie

I work in Payroll, without knowing your Taxable pay YTD, tax credit, Cut off and tax paid to date, no one is able to comment correctly.

If you have those figures, then you can get adequate advice

These figures should be clearly printed on your payslip

Spanish Eyes

Did you get a tax credit certificate from Revenue or did your employer get one on your behalf? Ask employer if they got an RPN for you. That's a Revenue Payroll Notification that shows your tax credits and details of any previous earnings before you took up this job.

Ask them again how they calculated your PAYE. And quote this from Revenue too it might help.

https://www.revenue.ie/en/employing-people/paying-an-employee/methods-of-calculating-tax/cumulative-basis.aspx#:~:text=An%20employee's%20tax%20is%20generally,already%20deducted%20during%20that%20year.&text=tax%20credits%20and%20rate%20bands

screamer

Agree we'd need all the details to help but if you were with the same employer earlier this year it's possible that there's some tax owed from that previous period as that's how the cumulative system works it's based on your earnings to date and cumulative taxes but still this deduction is very high.

JDowd

Lokie wrote: »

I work in Payroll, without knowing your Taxable pay YTD, tax credit, Cut off and tax paid to date, no one is able to comment correctly.

If you have those figures, then you can get adequate advice

These figures should be clearly printed on your payslip

Sent you a PM, Thank you!

JDowd

Spanish Eyes wrote: »

Did you get a tax credit certificate from Revenue or did your employer get one on your behalf? Ask employer if they got an RPN for you. That's a Revenue Payroll Notification that shows your tax credits and details of any previous earnings before you took up this job.

Ask them again how they calculated your PAYE. And quote this from Revenue too it might help.

https://www.revenue.ie/en/employing-people/paying-an-employee/methods-of-calculating-tax/cumulative-basis.aspx#:~:text=An%20employee's%20tax%20is%20generally,already%20deducted%20during%20that%20year.&text=tax%20credits%20and%20rate%20bands

I don't know for sure but I've worked with this employer previously and had little to none problems with my tax details, so I presume my employer got one on my behalf. I'll get in contact with them and ask those details linking that quote.

Appreciate it.

JDowd

screamer wrote: »

Agree we'd need all the details to help but if you were with the same employer earlier this year it's possible that there's some tax owed from that previous period as that's how the cumulative system works it's based on your earnings to date and cumulative taxes but still this deduction is very high.

I've been deducted adequate tax on all my previous payslips received from that employer.

Initially, I was charged an excess amount (emergency tax) as I wasn't registered with Revenue. I claimed that tax back on my latest payslip, whilst paying all the adequate deductions.

I'm unsure whether this is a screw up on my Employers behalf or Revenues behalf. My colleagues haven't had any issues so I'm veering towards screw up by Revenue but I really don't know.

antix80

Wild guess but i wonder if your employer switched you back to emergency tax, then recalculated your income from earlier in the year as emergency tax..

Best thing you can do is set up your "new" employment online asap. If there's a mistake it should rectify itself when your employer knows your tax credits.

gordongekko

JDowd wrote: »

I've been deducted adequate tax on all my previous payslips received from that employer.

Initially, I was charged an excess amount (emergency tax) as I wasn't registered with Revenue. I claimed that tax back on my latest payslip, whilst paying all the adequate deductions.

I'm unsure whether this is a screw up on my Employers behalf or Revenues behalf. My colleagues haven't had any issues so I'm veering towards screw up by Revenue but I really don't know.

Revenue cant screw this up. What happened when you updated the information on the self service taps of ROS?. Revenue only process as per the information on their systems which is either provided by you or your employer.

JDowd

gordongekko wrote: »

Revenue cant screw this up. What happened when you updated the information on the self service taps of ROS?. Revenue only process as per the information on their systems which is either provided by you or your employer.

I haven’t created an ROS Account yet, but after reading the previous replies I attempted to last night.

It’s currently asking me for my ‘Tax Registration Number’ but I haven’t a clue what that is. I attorney to send Revenue.ie an “enquiry” through their system but their turnaround is slow.

Anyone know where I can find my Tax Registration Number?

Thanks as always folks,

nhg

It's your PPS number

JDowd

nhg wrote: »

It's your PPS number

I’ve selected “Income Tax” as the tax type and my PPS number as the Tax Registeration Number numerous times now, but it’s instantly denying my PSS as the Registration Number;

“Either the tax type you have entered is not valid for this registration number or you have entered the registration number incorrectly. It can take up to 3 working days for new tax types or registration numbers to fully update so that you can complete this step.Please note that a PAYE registration number is not valid for ROS. ROS services are available for self-assessed taxes, business taxes or reporting obligations.“

longgonesilver

Try here

https://www.ros.ie/myaccount-web/sign_in.html?execution=e1s1

Have you a MyGovID?

howardmarks

Did you get a payslip?
Is there a figure for cumulative earnings to date?
Cumulative tax credits and standard rate cut off point to date?
Is there an E or W1 or a N anywhere on it?
As I said before even Emergency basis is not 92%.
If there was a gap in employment since you last worked you would have accumulated credits and cut off points that would mean you pay little to no tax.

relax carry on

Do not register for ROS. That is for self assessed individuals. You need to register for MyAccount.

https://www.revenue.ie/en/online-services/services/paye-services/add-a-job-or-a-pension.aspx

JDowd

relax carry on wrote: »

Do not register for ROS. That is for self assessed individuals. You need to register for MyAccount.

https://www.revenue.ie/en/online-services/services/paye-services/add-a-job-or-a-pension.aspx

I’ve been registered on myAccount for months now, and had no difficulty with the payslips prior to this one.

Is their something I need to tweak on myAccount?

JDowd

howardmarks wrote: »

Did you get a payslip?
Is there a figure for cumulative earnings to date?
Cumulative tax credits and standard rate cut off point to date?
Is there an E or W1 or a N anywhere on it?
As I said before even Emergency basis is not 92%.
If there was a gap in employment since you last worked you would have accumulated credits and cut off points that would mean you pay little to no tax.

Yes, received the payslip yesterday.

I can PM you all the cumulative details it displays on the payslip if that’s what you’re referencing too.

Tax/USC Status - N

EMER St.PER - 9

PRSI CODE - A1

Total INS week - 3

JDowd

longgonesilver wrote: »

Try here

https://www.ros.ie/myaccount-web/sign_in.html?execution=e1s1

Have you a MyGovID?

I don’t have a MyGovID but have had an active myAccount for months now.

It’s asking me for my Tax Registration Number but I can’t find it on any previous forms, receipts or payslips etc...

relax carry on

JDowd wrote: »

I’ve been registered on myAccount for months now, and had no difficulty with the payslips prior to this one.

Is their something I need to tweak on myAccount?

Stop trying to register for anything else. Log into MyAccount. Go to PAYE services. Click Update Job or Pension Details. Follow the instructions if your employment isn't registered.

The Diddakoi

JDowd wrote: »

I don’t have a MyGovID but have had an active myAccount for months now.

It’s asking me for my Tax Registration Number but I can’t find it on any previous forms, receipts or payslips etc...

The MyGovID is the same as myAccount, you do not need to register for ROS, that is for business tax. Income Tax is the one businesses pay, it doesn’t apply to your situation.

Log in to myAccount, in the PAYE tab click on Manage my Tax 2020. This will show your active and ceased employments for this year. If your employer ceased your employment properly when you left you should have one ceased employment, and one new employment with this employer. All your tax credits and SRCOP should be allocated to the new employment. You can also check this on your tax credit certificate, which should be in My Documents.

Mysterypunter

JDowd wrote: »

I haven’t created an ROS Account yet, but after reading the previous replies I attempted to last night.

It’s currently asking me for my ‘Tax Registration Number’ but I haven’t a clue what that is. I attorney to send Revenue.ie an “enquiry” through their system but their turnaround is slow.

Anyone know where I can find my Tax Registration Number?

Thanks as always folks,

Tax registration number is the employers number, it has nothing to do with your PPS number, the payroll or hr department should know it instantly, you will need this to get off emergency tax, and for your wage to be calculated properly. Also in my dealings with revenue I have found them incompetent and unhelpful, if you are trying to recover back taxes, Irish tax rebates.com was helpful to me, but get the Tax Registration Number from your employer, because if you don't, this will drag on. The Irish tax rebates site does charge a fee, think it was about 100 out of 1600 for me, but they sent me a cheque within 6 weeks of contacting them.

StackSteevens

JDowd wrote: »

I haven’t created an ROS Account yet, but after reading the previous replies I attempted to last night.

It’s currently asking me for my ‘Tax Registration Number’ but I haven’t a clue what that is. I attorney to send Revenue.ie an “enquiry” through their system but their turnaround is slow.

Anyone know where I can find my Tax Registration Number?

Thanks as always folks,

For the record:

In the past three weeks I have been in frequent contact with revenue through their enquiry system(discussing income tax, not PAYE) and the longest that i have had to wait for a response has been two working days. On a couple of occasions, I have had a reply within a half day, which is very impressive.

I don't know whether I have just been very lucky or whether that's a common experience these days - so I suggest that you try it out for yourself rather than believing twitter!

Your question regarding a TRN puzzles me as there's no such thing for a PAYE employee:

A Tax Registration Number (TRN) is issued by Revenue when you register for tax as a sole trader, trust, partnership or company.

You must use your TRN when trading and filing your tax returns as a sole trader, trust, partnership or company.

Note As a sole trader your TRN will be the same as your Personal Public Service Number (PPSN).
Your PPSN does not become your TRN until you have been registered with Revenue as a sole trader.

StackSteevens

Mysterypunter wrote: »

Tax registration number is the employers number, it has nothing to do with your PPS number, the payroll or hr department should know it instantly, you will need this to get off emergency tax, and for your wage to be calculated properly.

WRONG!

Also in my dealings with revenue I have found them incompetent and unhelpful, if you are trying to recover back taxes, Irish tax rebates.com was helpful to me, but get the Tax Registration Number from your employer, because if you don't, this will drag on. The Irish tax rebates site does charge a fee, think it was about 100 out of 1600 for me, but they sent me a cheque within 6 weeks of contacting them.

I, on the other hand, have never had to wait for more than a few days for a tax refund. I suspect that it depends on whether or not one has provided them with all of the required information!

Mysterypunter

StackSteevens wrote: »

WRONG!




I, on the other hand, have never had to wait for more than a few days for a tax refund. I suspect that it depends on whether or not one has provided them with all of the required information!

Who pissed on your cornflakes, ****ing know all

StackSteevens

Mysterypunter wrote: »

Who pissed on your cornflakes, ****ing know all

The OP wants help; not a bit of home-baked rubbish from a halfwit with a chip on their shoulder.

Mrs OBumble

OP ... were you on a benefit in between the two jobs? If so, its taxable and your employer has deducted the tax on it, ' cos Revenue told him to.

If so, then this is a one off thing, and your pay will be normal from now on.

StackSteevens

Mrs OBumble wrote: »

OP ... were you on a benefit in between the two jobs? If so, its taxable and your employer has deducted the tax on it, ' cos Revenue told him to.

If so, then this is a one off thing, and your pay will be normal from now on.

Thing is, to have had a PAYE deduction of €474.26 would mean that he had received about €2,300 in benefits over and above the level of his weekly tax credits.

Hard to see how someone could have received so much in benefits - even someone receiving the special Covid 19 weekly allowance is only liable for PAYE of about €7 a week.

JDowd

Mrs OBumble wrote: »

OP ... were you on a benefit in between the two jobs? If so, its taxable and your employer has deducted the tax on it, ' cos Revenue told him to.

If so, then this is a one off thing, and your pay will be normal from now on.

No benefits or claims or anything like that in between the two jobs.

I noted that the the old job (Feb2020) was still “active” on my employments. I ceased it this morning first thing so as of right now there is only one active employment. But at the time the Paylslip went out there were two active employments.

Could this have screwed it up?

JDowd

The Diddakoi wrote: »

The MyGovID is the same as myAccount, you do not need to register for ROS, that is for business tax. Income Tax is the one businesses pay, it doesn’t apply to your situation.

Log in to myAccount, in the PAYE tab click on Manage my Tax 2020. This will show your active and ceased employments for this year. If your employer ceased your employment properly when you left you should have one ceased employment, and one new employment with this employer. All your tax credits and SRCOP should be allocated to the new employment. You can also check this on your tax credit certificate, which should be in My Documents.

Just checked it there to find I had two active employments. The Job I’m currently working on now, and my previous job which finished back in February. I immediately ceased the previous February employment.

But at the time which my Payslip came through (Tuesday) I had two active employments, both under the same production.

JDowd

Mysterypunter wrote: »

Tax registration number is the employers number, it has nothing to do with your PPS number, the payroll or hr department should know it instantly, you will need this to get off emergency tax, and for your wage to be calculated properly. Also in my dealings with revenue I have found them incompetent and unhelpful, if you are trying to recover back taxes, Irish tax rebates.com was helpful to me, but get the Tax Registration Number from your employer, because if you don't, this will drag on. The Irish tax rebates site does charge a fee, think it was about 100 out of 1600 for me, but they sent me a cheque within 6 weeks of contacting them.

Thanks for the feedback. With Revenues phone lines terminated, it is making it very tricky to get in contact, although I’d much prefer to get the money owed without having to pay for a private cost.

Saying that if I’m being charged 95% PAYE on my current pay-slips and I can’t find a solution, I might have to consider it.

gordongekko

JDowd wrote: »

No benefits or claims or anything like that in between the two jobs.

I noted that the the old job (Feb2020) was still “active” on my employments. I ceased it this morning first thing so as of right now there is only one active employment. But at the time the Paylslip went out there were two active employments.

Could this have screwed it up?

Yes. Cease the old employment. Make sure your credits are assigned to your current employer

The Diddakoi

gordongekko wrote: »

Yes. Cease the old employment. Make sure your credits are assigned to your current employer

Also worth putting through a My Enquiry, and asking for all your credits and SRCOP to be moved to your new employment, on a cumulative basis. You will get a refund of any overpayment of tax and USC in your next pay.

Your credits and SRCOP were probably stuck with your original employment, which is why you were emergency taxed on your first pay. (Though the figures you sent in are high for emergency tax). Your employer should have sent in your cease date when they sent in your final pay & tax details to Revenue. If it was closed when your new employment was added, your allocations would have moved over automatically.

JDowd

The Diddakoi wrote: »

Also worth putting through a My Enquiry, and asking for all your credits and SRCOP to be moved to your new employment, on a cumulative basis. You will get a refund of any overpayment of tax and USC in your next pay.

Your credits and SRCOP were probably stuck with your original employment, which is why you were emergency taxed on your first pay. (Though the figures you sent in are high for emergency tax). Your employer should have sent in your cease date when they sent in your final pay & tax details to Revenue. If it was closed when your new employment was added, your allocations would have moved over automatically.

I’ve sent a My Enquiry already but will definitely include that when they reply. I’ll be sure to move the credits to my active employment.

It’s not normal emergency tax rates, this was 94.5% PAYE which is why I’ve been scrambling to try get it sorted.

I should get it all back though on the next payslip
though, right?

Really appreciate your help, thanks.

lashes34

Its not an emergency rate, you said you tax class was normal so it must have included extra pay to date and taxed it. Your pay year to date on your most recent payslip - is this correct for everything earned in all employment in 2020?

PM me if you want help looking at it.